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My mom got a loan out while I was in Cosmetology school and it was supposed to be for me but she ended up spending all of it. I was only Sixteen and the Sallie Mae person on the phone said I didnt have a Co-Signer wich confused me.
How was the Loan sanctioned to a 16 year old, without credit history and without a co-signer?
Now I have to pay back a loan that I didnt even use and wasnt old enough to make that decision.
Is there a way I can get out of this?

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    This sounds like a legal matter. Are you on good terms with your mom? It sounds like this might get ugly. Commented Dec 17, 2013 at 2:34
  • modified labels based on Sallie Mae in the question Commented Dec 17, 2013 at 10:59

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A loan can be sanctioned without a Co-Signer, it depends on the Banks policy. A Co-Signer would have helped reduced the rate of interest. see here

As the loan is in your name, it would be difficult to get out of it. Its best consulting a laywer and he can suggest you options and ask more detailed questions, for example if it can directly be established the money didn't reach you etc ...

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    minors in many jurisdictions cannot enter into a binding agreement. She says she was sixteen...
    – littleadv
    Commented Dec 17, 2013 at 5:20
  • Yep. We need to know country and state. I am assuming [maybe incorrectly?] the Bank may have done the due diligence with respect to law
    – Dheer
    Commented Dec 17, 2013 at 7:03
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    my guess would be that something is fishy, and either the mom signed in her name, or someone is trying to play tricks on the young lady.
    – littleadv
    Commented Dec 17, 2013 at 7:29

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